June 22 (Reuters) - Qualcomm QCOM.O is in advanced discussions to acquire Modular Inc in a transaction valuing the AI chip company at about $4 billion, Bloomberg News reported on Monday, citing people familiar with the matter.

If completed, the deal would mark a significant step-up from the $1.6 billion valuation Modular secured in a funding round just nine months ago.

A global supplier of smartphone chips, Qualcomm has been working to reduce its reliance on the volatile handset market by branching out into fast-growing areas like data center processors and autonomous vehicle chips.

Here are a few details:

• A deal could be announced in the coming weeks, though talks could still fall through or the details could change, Bloomberg said.

• Qualcomm did not immediately respond when contacted by Reuters, while Modular could not be reached for comment.

• Founded in 2022, Modular has raised a total of $380 million to date, including a $250 million in a funding round in September.

• In a separate deal, Qualcomm is in talks to acquire AI chip startup Tenstorrent for $8 billion to $10 billion, The Information reported last week.